Oil prices ended higher on the final trading day of 2024, with Brent crude settling at $74.64 per barrel, up $0.65 (+0.88%), and U.S. West Texas Intermediate (WTI) at $71.72 per barrel, rising $0.73 (+1.03%). Despite the daily gains, Brent recorded a 3% annual decline from its 2023 close of $77.04, while WTI remained largely unchanged year-over-year.
The decline in annual prices was driven by slowing post-pandemic demand recovery, China’s economic struggles, and rising global oil production. U.S. output hit a record 13.46 million barrels per day (bpd) in October and is forecast to climb further in 2025. Meanwhile, OPEC+ delayed planned production increases to April 2025 to address the surplus expected by the International Energy Agency (IEA).
Geopolitical events added uncertainty. U.S. strikes on Houthi targets in Yemen aimed to counter threats to Red Sea shipping routes, while President-elect Donald Trump’s potential sanctions on Iran could tighten supplies in 2025. Rising gasoline and distillate inventories, along with firming Indian demand and improving Chinese manufacturing data, offered mixed signals for the market heading into the new year.